Millicom (Tigo) share repurchase activity
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Insights
Share repurchase programs are a common strategy used by companies to return value to shareholders and can influence the stock price. In the case of Millicom's recent repurchase activity, the company has bought back a significant number of Swedish Depository Receipts (SDRs), which could potentially signal management's confidence in the company's intrinsic value. Analyzing the daily average price paid for the SDRs, it appears that Millicom has been able to execute these repurchases at a decreasing price trend over the course of the specified week.
Investors often view buybacks as a positive signal because they can lead to earnings per share (EPS) accretion, assuming the repurchased shares are retired. However, it's essential to consider the opportunity cost of this capital allocation decision. The funds used for repurchases could have been invested in growth opportunities or used to reduce debt. Stakeholders should evaluate whether the buyback is the best use of capital based on the company's strategic goals and financial health.
The repurchase of shares can also be seen as a tool for managing market perceptions. By analyzing the market's reaction to Millicom's repurchase activity, one could gauge investor sentiment towards the company. If the market responds positively, it could suggest that investors agree with the company's assessment of its stock being undervalued. Conversely, a neutral or negative market reaction might indicate skepticism about the repurchases or broader concerns about the company's future prospects.
It's also important to note that Millicom operates within the telecommunications sector, which is capital intensive. The decision to allocate capital towards share repurchases must be weighed against the sector's ongoing need for investment in infrastructure and technology to remain competitive.
From a legal perspective, it is crucial that Millicom's share repurchase program complies with the Market Abuse Regulation (MAR) and the Safe Harbour Regulation. These regulations provide a legal framework for share repurchases, ensuring they are conducted transparently and without manipulating the market. Millicom's adherence to these provisions helps to maintain investor trust and avoids potential legal pitfalls associated with share repurchase programs.
The mention of Citigroup Global Markets Limited as the entity conducting the repurchases on behalf of Millicom indicates that the company is utilizing a third-party service to ensure compliance and execution efficiency. This is a common practice that can help prevent conflicts of interest and ensure that transactions are carried out at arm's length.
Millicom (Tigo) share repurchase activity
Luxembourg, February 2, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 214,222 of its Swedish Depository Receipts (SDRs) between January 29, 2024 and February 2, 2024, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 01/29/2024 | 51,300 | 180.5341 | 9,261,399 |
| 01/30/2024 | 42,235 | 179.7477 | 7,591,644 |
| 01/31/2024 | 27,900 | 179.1885 | 4,999,359 |
| 02/01/2024 | 40,700 | 178.4860 | 7,264,380 |
| 02/02/2024 | 52,087 | 177.5405 | 9,247,552 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 1,299,275 treasury shares as of February 2, 2024. The total number of shares outstanding in Millicom is 172,096,305.
The repurchase program is being executed consistent with the provisions of Article 5 of MAR and the Commission Delegated Regulation No 2016/1052 (“Safe Harbour Regulation”). A full breakdown of the transactions is attached to this press release. For information about all transactions carried out under the repurchase program, refer to Nasdaq Stockholm’s website: http://www.nasdaqomx.com/transactions/markets/nordic/corporate-actions/stockholm/repurchases-of-own-shares
For further information, please contact:
| Press: Sofía Corral, Communications Director press@millicom.com | Investors: Michel Morin, VP Investor Relations investors@millicom.com |
About Millicom
Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile telecommunications services in Latin America. Through our TIGO® and Tigo Business® brands, we provide a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of September 30, 2023, Millicom, including its Honduras Joint Venture, employed approximately 19,000 people and provided mobile and fiber-cable services through its digital highways to more than 45 million customers, with a fiber-cable footprint over 13 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.
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FAQ
How many Swedish Depository Receipts (SDRs) did Millicom repurchase between January 29, 2024, and February 2, 2024?
Who carried out the purchases of SDRs on behalf of Millicom?
How many treasury shares does Millicom hold as of February 2, 2024?
What is the total number of shares outstanding in Millicom?
